Real estate is often considered the best investment during inflation because it tends to appreciate in value over time. This is due to a number of factors, including the increasing demand for housing as the population grows, the limited supply of land, and the rising costs of building materials and labor.
Why Real Estate is the Best Investment During Inflation
Inflation can also make real estate more valuable because it erodes the value of money over time. As the cost of goods and services increases, the purchasing power of money decreases. This means that the same amount of money that you had before inflation will be worth less in the future.
Real estate, on the other hand, tends to increase in value over time. This means that if you own a property, it will be worth more in the future due to inflation. This can be especially beneficial if you plan on holding onto the property for a long period of time, as it will likely appreciate significantly in value over time.
In addition, real estate can provide a steady stream of income through rental payments. As the cost of living increases, so do rental prices, which can provide a good hedge against inflation.
How House Flipping Beats Inflation
Investing in distressed real estate is an opportunity to force appreciation that out paces the rate of inflation. This is often done with single-family houses aka house flipping. This strategy has the advantage of two exit strategies: one is to rent the house or to re-sell the house.
Buying distressed houses at a discount and fixing them up into like-new condition can add significant value that far exceeds the rate of inflation. When a fully renovated house is resold for a fast profit, the money can be re-deployed into another deal: a rental or another flip.
Real Estate vs Stocks
Overall, real estate is considered a good investment during inflation because it tends to appreciate in value and can provide a steady stream of income, making it a more stable and reliable investment compared to stocks and other assets that may be more volatile.
High yield returns during times of uncertainty and high inflation is why real estate is the best investment during inflation.
Metro Atlanta Houses
Alpha Dog Capital has been investing in the Atlanta housing market since 2010 when home prices were at the bottom. We have learned to profit under every market condition. Our preferred strategy is fixing and flipping single-family houses for capital appreciation.
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